The global financial downturn during 2008 and 2009 fiscal years affected a number of multinational ventures, including the automobile industry worldwide. The Asian market received major setbacks as the GDP of many countries showed trends of unprecedented decrease. The per capita…
a deal assuring to provide a colossal package to combat the impact of global recession on the automobile industry (EUbusiness Ltd 2010), it still remains to be complex phenomena as to why the recession took such a heavy toll on trade and commerce worldwide. Critically speaking, a set of entropy predicted the probable outcome of a sweeping downward surge in various cross-country economies, eventually leading to discrepancy in the ratio of production and consumption. These factors lay hidden both in the functional as well as the structural aspects of the car industry. The editor of the Dog Lemon Guide Clive Matthew-Wilson notes that the international automobile sector can produce approximately 90 million new units every year, which is well over the estimated 60 million buyers. Drawing on from this statistics, he concludes that in the aftermaths of global recession, the potential consumer market was mobilized independently by respective states – a deal which is not very likely to last forever. Hence, it is notable that the affordability factor in terms of owning personal automobiles will continue to weaken furthermore as the world starts adjusting to the ongoing slump (Dog and Lemon Guide 2010). In the light of this evidence, this paper is going to critically assess the impact of recession on international trade and commerce, particularly the automotive arena. The study will incorporate discussion of the relevant literature duly backed up by empirical evidences, followed by detailed analysis of the methodologies. Lastly, a questionnaire attached at the end of the document will reflect the research findings and provide assistance to conducting interviews for further elaboration of the methodologies.
Before elaborating furthermore on the thesis question, it is worth investigating into the period that led up to the recent financial crises around the globe. It may be noted, however, that bulk of the study in this regard will focus on the US trade infrastructures and ...
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The economic recession led to downturns in growth that further led to huge inflation, decreased credit availability and high interest rate. This along with job cuts and reduced salaries has also led to decrease in the disposable income of individuals; this has further reduced the sales volumes of various companies.
This paper discusses some of the cultural problems a multinational company is likely to face in other countries and also gives some solutions to these problems that can be used by the multinational company to undertake a successful venture.
Consumers demand is also determined by taste and preferences, in difference countries the demand structure of consumers is very different and this is one problem that the multinational companies face, an example is where consumers may prefer a cheap good and in some countries the consumers are more concerned about the quality and not the price.
The primary reason for this is the increased globalization over the past 20 years.
The business culture might be entirely different. In some cultures relationships are much more important than the actual contract and in others it is the opposite. For example; Americans tend to focus a lot on the contract and pay only a little attention to the development of the relationship between the people involved.
Why do they peruse government tariffs and how do they justify, highlighting what they done and why for this case study, looking also at the strengths).
Key issues highlighted by the case study are the various Governments' interest in the economy of the country and its relation to the health of the private and governmental organizations, how the government supports the organisations particularly the civil aviation industry in developing new technologies and giving sops as an encouragement to this industry.
However in doing so, corporations are drawn into certain traps that could lead to tremendous fall of their performance and, consequently, massive decrease in their profits. The mobile communications in the United Kingdom, as portrayed in the article, is one good example to illustrate the domino effect that is prevalent in business operations today.
In addition to these layoffs, both General Motors and Ford have planned for multiple plant closures and the selling off of controlling shares of assets or subsidiaries in their ongoing struggle toward profitability. These announcements come as a blow to the tenuous economic recovery of the United States.
Much have been written about the factors contributing to the marked growth of trade between the years 1955 and 2004. Several factors have been mentioned and speculated to have contributed to such growth.
However, I personally believe that the four factors that may have contributed to the growth in merchandise in world trade between 1955 and 2004 are the following, but not necessarily in order: 1) the advent of and significantly rapid advances in information technology; 2) the reduction of, or, in some cases, elimination of, tariffs; 3) the rise in income cost; and, 4) the fall in transporters.
Moreover it also discusses some of the risk that is involved in the normal international trade.
While discussing the desirability of the counter trade, it provides a complete analysis of different research that has been conducted in different part of the world and compare and evaluates the results.
This paper sources its data from arguably most reliable internet sources and uses it to analyze the situation. Since the gross domestic product is a function of the recession, the paper uses it as a representative to interrogate its
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